Your company sold a product or service to a customer on credit, and now it's time for the customer to pay their dues. In a traditional workplace, an invoice would be manually generated and issued to the customer, and then the customer would issue payment in return via cash, check, etc. It ultimately makes for a long, drawn-out process that leaves room for error and delays, not to mention that handling business that way is now a thing of the past.
NetSuite is a cloud-based ERP software that provides businesses with many features to help run their business, and automating the account receivables (AR) process is one of them. AR automation reduces most of the manual labor that is involved with issuing invoices and collecting payments and it helps streamline the entire process for businesses.
The Basics of AR Automation with NetSuite
NetSuite provides businesses with some of the following AR automation features:
- Invoice generation: NetSuite allows businesses to generate and send invoices to customers automatically. This eliminates the need for manual data entry and reduces the chances of errors.
- Payment processing: NetSuite can integrate with various payment processing systems, allowing businesses to process payments and record them automatically. This ensures that payments are recorded accurately and in a timely manner.
- Collections management: NetSuite provides tools to manage collections and reminders, which helps businesses to follow up with customers who are behind on their payments.
- Reporting and analytics: NetSuite provides real-time reporting and analytics that help businesses to monitor their accounts receivable performance and identify areas for improvement.
The Benefits of AR Automation with NetSuite
By removing the tedious tasks of accounts receivables from staff member's plates, business owners can enjoy these benefits with AR automation:
- Streamlined processes: Reducing the time spent on processing paperwork and payments creates an all-around more efficient workflow.
- Improved cash flow: With faster invoicing comes faster customer payments. These faster payments will lead to an improved cash flow for a business and help decrease the "day's sales outstanding" metrics.
- Reduced costs: Paying less in labor costs and overhead that comes with automating the AR process, and other processes across a business, will save companies money in the long run.
- Increased accuracy: Removing manual human input from the equation greatly reduces the chance of inaccurate and inconsistent data.
- Enhanced reporting: NetSuite's AR dashboards provide real-time data related to the status of customer payments and assist with tracking AR aging. This will help prevent past-due invoices, duplicate payments, and more.
NetSuite provides businesses with everything they need to automate customer outreach, invoicing, and payment processing to make for a much smoother receivables process. To learn more about NetSuite's software offerings and how they can help your business, visit the AccountingDepartment.com blog today.